Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals has had an incredible week in the market this week. After releasing data from their most recent gastrointestinal study, the company’s stock skyrocketed. However, today, the story seems a bit different. SGYP is currently teetering on the line between profit and losses. Nonetheless, I’m not concerned. I think this one will continue to climb. So today, we’ll talk about why I’m not concerned about the activity we’re seeing from SGYP today and what we can expect to see moving forward.
Why Today’s SGYP Activity Isn’t A Concern
This morning, I’ve already received a Skype message from a friend and SGYP investor. He was starting to become a bit concerned because of the activity we’ve seen this morning. However, I have to say, it’s really not concerning at all. One thing that investors have to remember is the fact that price movement in the market is a series of overreactions. So, when positive news comes out, we see overreactions pushing the stock higher than it should be followed by the same pushing the stock lower before we see steady growth. I think that’s exactly what we’ve seen so far today. After the stock more than doubled over the past two days, it’s time for a bit of a correction before more upward movement can happen.
Why Synergy Pharmaceuticals Stock Is Likely To Climb In The Long Run
As I’ve mentioned in previous posts and above, I’m expecting to see great things from Synergy Pharmaceuticals stock in the long run. Here’s why…
- Study Results – First off, there’s a real reason for the big climbs we’ve seen. It’s not high volume, it’s not investor sentiment, it’s based on strong fundamental data. As mentioned above, SGYP recently released data from its most recent gastrointestinal study. The study revolved around an experimental drug known as Plecanatide that’s designed to help relieve constipation. The study results showed that not only was Plecanatide effective, it resulted diarrhea for only 6% of patients; far better than the 16% we see from the current leader Linzess.
- Management – One thing that I look at incredibly closely when making long term predictions is the management of the company. After all, take a look at Twitter Inc (NYSE: TWTR); a company with a great product that’s struggling as the result of poor management. However, SGYP and TWTR are far different animals when it comes to management. The management team at SGYP is plan driven; and clearly has goals that they intend to reach. This is incredibly important when looking for a company to invest in for the long run.
- Talented Team – Finally, we’ve all heard the saying “a chain is only as strong as its weakest link.” When it comes to SGYP, we’re looking at an incredibly strong chain. The company’s team of physicians and scientists is an incredibly talented one; one that will likely help to send this stock skyrocketing in the long run!
What Do You think?
Where do you think SGYP is headed and why? Let us know in the comments below!